HBA-EDN, CBW H.B. 1110 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1110
By: Hilbert
Natural Resources
7/25/2001
Enrolled



BACKGROUND AND PURPOSE 

Currently, the North Harris County Regional Water Authority  provides
groundwater service to more than 400,000 people living outside the
boundaries of the city of Houston.  The authority was created by the
legislature during the 76th  Legislative Session.  Due to challenges
regarding water quality and quantity and ground subsidence in the Harris
and Galveston county areas, the authority is implementing procedures to
convert from groundwater usage to surface water usage.  House Bill 1110
authorizes the board of directors of a district to petition the authority
for inclusion in the authority and provides that a plan to reduce reliance
on groundwater must be in effect not later than December 31, 2002. 

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 1110 amends law to provide that the North Harris County Regional
Water Authority   does not include the territory of a municipal utility
district (MUD) located within the boundaries of the authority only if any
portion of the MUD is located outside the boundaries of the authority on
the effective date of this Act and the MUD does not own, lease, or receive
water for non-emergency purposes from a well located within the boundaries
of the authority (SECTION 2).  

H.B. 1110 authorizes the board of directors of a MUD to request by petition
the inclusion of its territory in the territory of the authority.  If the
authority has bonds, notes, or other obligations outstanding, the bill
requires the board of directors of the authority to require the petitioning
MUD to assume its share of the outstanding bonds, notes, or other
obligations. The bill requires the board, before the 61st day after the
date the authority receives the petition, to hold a hearing to consider the
petition.  The bill authorizes the board to grant the petition and order
the territory described in the petition included in the authority's
territory if it is feasible, practicable, and to the advantage of the
authority and the authority's system and other improvements are sufficient
or will be sufficient to supply the added territory without injuring the
territory already included in the authority (SECTION 3). 

The bill provides that a MUD shall not be required to pay any fee to the
authority for admission or reimbursement for activities the authority has
undertaken if the MUD submits a petition before January 1, 2002.  The bill
requires a MUD that petitions for inclusion on or after January 1, 2002, to
pay such fees (SECTION 3).   

H.B. 1110 authorizes the authority to develop, implement, participate in,
and enforce a groundwater reduction plan to reduce reliance on groundwater
and sets forth requirements regarding such a plan.  The bill requires a
groundwater reduction plan to be binding on persons, MUDs, entities, and
wells within the authority's boundaries and authorizes a plan to exceed the
minimum requirements imposed by the subsidence district, including without
limitation any applicable groundwater requirements (SECTION 4).    
 
The bill authorizes the authority to contract on such terms as are mutually
agreeable with any person or MUD located outside the authority to allow the
person or MUD to be included in the authority's groundwater reduction plan.
The bill requires such contracts to have the same force and effect as if
the person or MUD were located within the authority, except that the person
or MUD shall not have the right to vote in elections for members of the
board of the authority (SECTION 4). 

The bill authorizes the authority to exercise the power of eminent domain
and sets forth provisions regarding such power.  H.B. 1110 also provides
that a MUD inside of the authority's boundaries retains its separate
identity, powers, and duties, except that the MUD is subject to the powers
and duties of the authority, including those powers and duties necessary to
develop, implement, and enforce a groundwater reduction plan (SECTIONS 5
and 7). 

The bill repeals law regarding the exclusion of certain territory from the
authority (SECTION 8). 

EFFECTIVE DATE

June 16, 2001.