HBA-LJP C.S.H.B. 1842 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1842 By: Callegari Natural Resources 4/3/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve state and regional interests. The Texas Constitution authorizes the creation of groundwater conservation districts to plan, develop, and regulate the use of water. The land proposed to be included within the West Harris County Water Authority (authority) is located within Area 3 of the Harris-Galveston Coastal Subsidence District (Subsidence District) and a small portion of Fort Bend County. The subsidence district has issued groundwater reduction regulations that require use of water sources other than groundwater. Currently, the water needs of the area are provided by districts through groundwater wells. The subsidence district requires major water users in Area 3 to gradually convert to alternative water sources in the coming years. In addition, a combined groundwater reduction plan must be submitted by the effected entities to the subsidence district by January 2003. Creation of the authority would allow water districts the opportunity to participate in an entity through which they can influence water decisions for the area, and provide a mechanism to prepare a combined groundwater reduction plan for all entities within the authority. C.S.H.B. 1842 creates the West Harris County Regional Water Authority. 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 C.S.H.B. 1842 creates the West Harris Regional Water Authority (authority) in Harris County and sets forth provisions regarding the boundaries of the district (SECTIONS 1.01-1.04). The bill also sets forth provisions regarding the exclusion of certain territory and the annexation of territory (SECTIONS 1.05 and 1.06). The bill provides that the authority is governed by a board of nine directors (board) who represent nine single member voting districts and sets forth provisions regarding the administration of the board and the method of appointment, terms, qualifications, and eligibility of the directors. The bill also sets forth the metes and bounds of the nine single member voting districts and the names of the nine initial directors (SECTIONS 1.07, 2.01-2.04, and 3.01). The board is authorized to employ or contract with a person to be a general manager of the district and to delegate to the general manager full authority to manage and operate the authority (SECTION 3.02). The authority is authorized to: provide for the conservation of groundwater and facilitate compliance with the Harris-Galveston Coastal Subsidence District requirements; acquire or develop surface water and groundwater supplies from sources inside and outside of the authority and to store, transport, treat, distribute, sell, and allocate water to persons, and political subdivisions of the state inside and outside of the authority; enter into contracts with persons inside or outside of the authority, including political subdivisions of the state; coordinate water services; and administer and enforce the provisions of this Act. The bill provides that certain provisions relating to filing, notice, and posting requirements do not apply to the authority. The authority is subject to the right of supervision of the state to be exercised through the Texas Natural Resource Conservation Commission (SECTION 4.01). The authority is also authorized to: acquire, design, finance, construct, maintain, operate, lease, or sell a water treatment or supply system or any other facility to accomplish the purposes of the authority inside or outside of the authority; contract with any person to operate or maintain a water treatment or supply system the person owns; and acquire water rights. Any competitive bidding laws that are applicable to districts are applicable to the authority. The authority is authorized to regulate the construction of certain water lines within the district (SECTION 4.10). The authority may purchase surplus property from this state, the United States, or another public entity though a negotiated contract without bids (SECTION 4.12). The bill authorizes the authority by rule to develop and manage comprehensive water supply or drought contingency plans as well as a groundwater reduction plan and sets forth provisions regarding the plan (SECTION 4.08 and 4.09). The board is required to endeavor to coordinate with the City of Houston to develop a plan for the economic and efficient distribution of surface water (SECTION 4.13). The bill authorizes the authority to establish fees, user fees, rates, and charges as necessary to fulfill the authority's purpose and sets forth provisions regarding these charges (SECTION 4.03). The bill authorizes the board to undertake improvement projects and sets forth provisions regarding the imposition of assessment fees for these projects. The bill sets forth provisions regarding the hearing on the advisability of these operations and fees and authorizes the board to establish rules regarding procedures for a hearing (SECTION 4.05). The bill authorizes the board to require the payment of certain interests and penalties for late or unpaid fees (SECTION 4.06). The bill authorizes the authority to, without an election, borrow money on negotiable notes and issue bonds, and sets forth provisions regarding the notes and bonds (SECTIONS 5.01 and 5.02). The bill sets forth provisions regarding the expenditure of the authority's money and prohibits the authority from levying an ad valorem tax (SECTIONS 4.15 and 4.16). The authority may adopt and enforce rules to implement this Act (SECTION 4.02). The bill provides that a person who violates a rule or order of the authority is subject to a civil penalty of not more than $5,000 for each violation and authorizes the authority to bring an action to recover the penalty or for injunctive relief in a district court in the county where the violation occurred or is threatened to occur (SECTION 4.07). Although the authority is authorized to use the right of eminent domain for any of its purposes, the bill prohibits the authority from using the power of eminent domain to acquire water rights and from condemning property in certain political subdivisions (SECTION 4.17). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1842 amends the original to remove provisions that include in the authority all of the specified territory in Harris and Waller Counties of any district or municipality and adds that areas in the boundaries of Waller County are not included in the authority (SECTION 1.03). The substitute includes the qualifications and eligibility of the directors of the authority board (board) (SECTION 2.01). The substitute sets forth the boundaries of the nine-single member voting districts and the names of the nine directors of the initial board (SECTIONS 1.07 and 2.04). C.S.H.B. 1842 authorizes the authority to allocate water among persons participating in the authority's groundwater reduction plan whether they are located inside or outside the boundaries of the authority and provides that certain provisions relating to filing, notice, and posting requirements do not apply to the authority (SECTION 4.01). The substitute authorizes an authority to establish fees, user fees, rates, and charges that are sufficient to develop, implement, or enforce a groundwater reduction plan and to satisfy all rate covenants relating to the issuance of notes, bonds, and other obligations (SECTION 4.03). C.S.H.B. 1842 authorizes the board to undertake improvement projects and sets forth provisions regarding the imposition of and hearings regarding assessments (SECTION 4.05). The substitute authorizes the board to require the payment of certain interest and penalties for late or unpaid fees (SECTION 4.06). The substitute authorizes the authority to contract with a person outside the boundaries of the authority to allow the person to be to be included in an adopted or implemented groundwater reduction plan in which the authority participates (SECTION 4.10). The substitute prohibits the authority from using the power of eminent domain to condemn property in certain political subdivisions (SECTION 4.17).