HBA-CBW H.B. 1110 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1110 By: Hilbert Natural Resources 2/25/2001 Committee Report (Amended) BACKGROUND AND PURPOSE Currently, the North Harris County Regional Water Authority (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 (authority) does not include the territory of a municipal utility district (MUD) located within the boundaries of the authority 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. 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 (board) 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. 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. H.B. 1110 requires the authority to develop and implement groundwater reduction and water supply plans to reduce reliance on groundwater and sets forth requirements regarding such plans. 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 and water supply plan. The bill requires such contracts to have the same force and effect as if the person or MUD were located within the authority. The bill authorizes the authority to exercise the power of eminent domain outside the boundaries of the authority. 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 the authority's power and duty to develop and implement groundwater reduction and water supply plans. The bill repeals law regarding the exclusion of certain territory from the authority. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. EXPLANATION OF AMENDMENTS Committee Amendment No.1 adds the words "for non-emergency purposes" to provide that the North Harris County Regional Water Authority (authority) does not include the territory of a municipal utility district (MUD) located within the boundaries of the authority if the MUD does not own, lease, or receive water for non-emergency purposes from a well located within the boundaries of the authority.