Texas 2025 89th Regular

Texas House Bill HB420 House Committee Report / Analysis

Filed 03/31/2025

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                    BILL ANALYSIS             C.S.H.B. 420     By: Bell, Keith     Natural Resources     Committee Report (Substituted)             BACKGROUND AND PURPOSE    According to a recent news report by NBC DFW and based on U.S. Census Bureau data, Kaufman County is the fastest-growing county in Texas by percentage increase. The bill author has informed the committee that helping to propel this population growth are over 20 special purpose districts that contain thousands of homes, with thousands more currently under construction. The bill author has also informed the committee that a number of these districts hold board meetings and tax rate hearings outside their jurisdictional boundaries, with meetings occurring up to 30 to 50 miles away, and often do not provide remote access, which makes it inconvenient for the public to participate. C.S.H.B. 420 seeks to address this issue by requiring certain board meetings and tax rate hearings for districts in the county to be held inside or within 10 miles of the district's boundary and allowing for such meetings and hearings to be held by telephone conference call or video conference call.        CRIMINAL JUSTICE IMPACT   It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.       RULEMAKING AUTHORITY    It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.       ANALYSIS    C.S.H.B. 420 amends the Water Code to require the board of a water district that is subject to Chapter 49 of that code and is wholly or partly located in a county that contains a portion of the Cedar Creek Reservoir and borders a county with a population of 2.6 million or more, if the board conducts meetings at least quarterly, to conduct a meeting at least once per quarter at a designated meeting location inside the district or within 10 miles of the district's boundary. The bill authorizes the board of such a district to hold a regular or special meeting by telephone conference call or video conference call if at least one board member participating in the meeting is physically present at a location that is open to the public during the open portions of the meeting. The bill requires a board member who participates in a meeting by such a conference call to be counted as present at the meeting for all purposes.   C.S.H.B. 420 also requires a public hearing for a municipal utility district wholly or partly located in the previously described county at which the adoption of a tax rate will be considered to be conducted as follows:          at a designated meeting location inside the district or within 10 miles of the district's boundary; or          by telephone conference call or video conference call, as provided by the bill for a quarterly meeting of a water district board.       EFFECTIVE DATE    September 1, 2025.       COMPARISON OF INTRODUCED AND SUBSTITUTE   While C.S.H.B. 420 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.   Whereas the introduced established that an applicable water district may satisfy the meeting place requirements established by the bill by conducting quarterly meetings by telephone conference call or video conference call, the substitute instead authorizes an applicable district's board to hold a regular or special meeting by telephone conference call or video conference call if at least one board member participating in the meeting is physically present at a location that is open to the public during the open portions of the meeting. The substitute also includes a provision absent from the introduced requiring a board member who participates in a meeting by such a conference call to be counted as present at the meeting for all purposes.   The substitute does not include the introduced version's requirement for a meeting to discuss the tax rate of an applicable water district to be conducted in person.   The substitute includes a provision absent from the introduced that establishes requirements for a public hearing at which the adoption of a tax rate for a municipal utility district located in an applicable county will be considered.

BILL ANALYSIS



# BILL ANALYSIS

C.S.H.B. 420
By: Bell, Keith
Natural Resources
Committee Report (Substituted)



C.S.H.B. 420

By: Bell, Keith

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE    According to a recent news report by NBC DFW and based on U.S. Census Bureau data, Kaufman County is the fastest-growing county in Texas by percentage increase. The bill author has informed the committee that helping to propel this population growth are over 20 special purpose districts that contain thousands of homes, with thousands more currently under construction. The bill author has also informed the committee that a number of these districts hold board meetings and tax rate hearings outside their jurisdictional boundaries, with meetings occurring up to 30 to 50 miles away, and often do not provide remote access, which makes it inconvenient for the public to participate. C.S.H.B. 420 seeks to address this issue by requiring certain board meetings and tax rate hearings for districts in the county to be held inside or within 10 miles of the district's boundary and allowing for such meetings and hearings to be held by telephone conference call or video conference call.
CRIMINAL JUSTICE IMPACT   It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY    It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS    C.S.H.B. 420 amends the Water Code to require the board of a water district that is subject to Chapter 49 of that code and is wholly or partly located in a county that contains a portion of the Cedar Creek Reservoir and borders a county with a population of 2.6 million or more, if the board conducts meetings at least quarterly, to conduct a meeting at least once per quarter at a designated meeting location inside the district or within 10 miles of the district's boundary. The bill authorizes the board of such a district to hold a regular or special meeting by telephone conference call or video conference call if at least one board member participating in the meeting is physically present at a location that is open to the public during the open portions of the meeting. The bill requires a board member who participates in a meeting by such a conference call to be counted as present at the meeting for all purposes.   C.S.H.B. 420 also requires a public hearing for a municipal utility district wholly or partly located in the previously described county at which the adoption of a tax rate will be considered to be conducted as follows:          at a designated meeting location inside the district or within 10 miles of the district's boundary; or          by telephone conference call or video conference call, as provided by the bill for a quarterly meeting of a water district board.
EFFECTIVE DATE    September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE   While C.S.H.B. 420 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.   Whereas the introduced established that an applicable water district may satisfy the meeting place requirements established by the bill by conducting quarterly meetings by telephone conference call or video conference call, the substitute instead authorizes an applicable district's board to hold a regular or special meeting by telephone conference call or video conference call if at least one board member participating in the meeting is physically present at a location that is open to the public during the open portions of the meeting. The substitute also includes a provision absent from the introduced requiring a board member who participates in a meeting by such a conference call to be counted as present at the meeting for all purposes.   The substitute does not include the introduced version's requirement for a meeting to discuss the tax rate of an applicable water district to be conducted in person.   The substitute includes a provision absent from the introduced that establishes requirements for a public hearing at which the adoption of a tax rate for a municipal utility district located in an applicable county will be considered.



BACKGROUND AND PURPOSE

According to a recent news report by NBC DFW and based on U.S. Census Bureau data, Kaufman County is the fastest-growing county in Texas by percentage increase. The bill author has informed the committee that helping to propel this population growth are over 20 special purpose districts that contain thousands of homes, with thousands more currently under construction. The bill author has also informed the committee that a number of these districts hold board meetings and tax rate hearings outside their jurisdictional boundaries, with meetings occurring up to 30 to 50 miles away, and often do not provide remote access, which makes it inconvenient for the public to participate. C.S.H.B. 420 seeks to address this issue by requiring certain board meetings and tax rate hearings for districts in the county to be held inside or within 10 miles of the district's boundary and allowing for such meetings and hearings to be held by telephone conference call or video conference call.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 420 amends the Water Code to require the board of a water district that is subject to Chapter 49 of that code and is wholly or partly located in a county that contains a portion of the Cedar Creek Reservoir and borders a county with a population of 2.6 million or more, if the board conducts meetings at least quarterly, to conduct a meeting at least once per quarter at a designated meeting location inside the district or within 10 miles of the district's boundary. The bill authorizes the board of such a district to hold a regular or special meeting by telephone conference call or video conference call if at least one board member participating in the meeting is physically present at a location that is open to the public during the open portions of the meeting. The bill requires a board member who participates in a meeting by such a conference call to be counted as present at the meeting for all purposes.

C.S.H.B. 420 also requires a public hearing for a municipal utility district wholly or partly located in the previously described county at which the adoption of a tax rate will be considered to be conducted as follows:

at a designated meeting location inside the district or within 10 miles of the district's boundary; or

by telephone conference call or video conference call, as provided by the bill for a quarterly meeting of a water district board.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 420 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced established that an applicable water district may satisfy the meeting place requirements established by the bill by conducting quarterly meetings by telephone conference call or video conference call, the substitute instead authorizes an applicable district's board to hold a regular or special meeting by telephone conference call or video conference call if at least one board member participating in the meeting is physically present at a location that is open to the public during the open portions of the meeting. The substitute also includes a provision absent from the introduced requiring a board member who participates in a meeting by such a conference call to be counted as present at the meeting for all purposes.

The substitute does not include the introduced version's requirement for a meeting to discuss the tax rate of an applicable water district to be conducted in person.

The substitute includes a provision absent from the introduced that establishes requirements for a public hearing at which the adoption of a tax rate for a municipal utility district located in an applicable county will be considered.