BILL ANALYSIS C.S.H.B. 3193 By: Saunders April 28, 1995 Committee Report (Substituted) BACKGROUND Water authorities are created to control and distribute storm, flood, and river water for irrigation, power, and other useful purposes, including reclamation and irrigation of arid land; drainage; conservation and development of hydroelectric power; conservation of forests; navigation; protection of the state's water purity and sanitation; the supplying of water; alteration of land elevations; and the provision of recreational facilities. The legislature is given the authority to create these districts in Article 16, Section 59 of the Texas Constitution PURPOSE This bill creates a water district in Travis County. 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. SECTION BY SECTION ANALYSIS ARTICLE 1 Provides for the creation of the Southwest Travis County Water District under Section 59, Article XVI, Texas Constitution and defines terms. ARTICLE 2 Provides for a board of nine directors with three appointed by the Governor, three appointed by the Lieutenant Governor, and three members appointed by the Lieutenant Governor from a list submitted by the Speaker of the House of Representatives. Directors must be residents of Travis County, and at least five of the directors must reside in the district. Also, the directors serve for staggered 6 year terms. The board is directed to organize and meet at least four times each year, and members are to be compensated at the rate of $50 per day. The board is also directed to employ a general manager. Conflicts of interest are prohibited and employees bonds are required. In addition, the authority shall establish a district office, maintain certain records, and adopt a seal. This section also states that the authority may sue and be sued in its corporate name. ARTICLE 3 Provides for the general powers and duties of the authority including the coordination of the provision of water, wastewater, solid waste disposal, and drainage services and control and abatement of water pollution within the district. Creation of a political subdivision within the district requires consent of the district board. Annexation of district territory requires consent of the district board and approval of all landowners in the area to be annexed. The district's rights within the district to: regulate septic tanks; regulate pollution of certain sources of water supply; protect a watershed; protect and manage endangered species; regulate subdivision of land, zoning and land use, resource extraction activities, and use and development of public parkland; coordinate provision of water, wastewater, solid waste disposal, or drainage services; and control and abate water pollution are subject to the Texas Natural Resources Conservation Commission's authority but not to the authority of any local government. The district is granted general rulemaking power, the right to enter land, hold hearings, and recover penalties. The district is granted extensive power within the district to: prescribe pollution abatement programs; devise water, wastewater or drainage control plans; establish minimum standards of operation for all activities and facilities in the district that are related to solid waste; regulate use of septic systems; approve plats and replats of tracts; enforce, amend, or terminate provisions of agreements between MUDs and political subdivisions; acquire, construct, and operate systems; contract systems; sell water; receive permits; exercise eminent domain; relocate facilities; use public easements; acquire, use, or operate facilities; enter into contracts; and enter into cooperative agreements. The district's actions are reviewable by a district court. However, a person bringing an unsuccessful challenge to any portion of this Act shall pay reasonable attorney's fees and costs incurred by prevailing parties in defending this Act. ARTICLE 4 Provides that the authority shall select a depository bank and may disburse money only by an instrument signed by an authorized person and that the authority may establish fees and charges. The authority may borrow money and accept grants. The board shall also establish the authority's fiscal year, and an annual audit is required. ARTICLE 5 Provides that the authority may issue revenue bonds and refunding bonds and establishes procedures for approval and registration of the bonds. The section also states that the authority may not levy ad valorem taxes, except upon the approval of qualified voters in the district. ARTICLE 6 Provides that the authority shall include all territory within the district, whether the territory contains noncontiguous parcels of land and whether the territory is located within the boundaries of any municipality or other governmental entity or political subdivision of the state. The district specifically includes the territory contained within the metes and boundaries described in this section. A finding is made that the authority is created to serve a public use and benefit. In addition, provision is made for adding territory to the authority area via petition process. Also, limitations on the amount of land the district can annex are delineated, including a maximum size limitation of 8,000 acres for the district territory. ARTICLE 7 A finding is made that procedures required for the introduction of a local bill have been made. Reconciles the jurisdictions of the district and certain existing conservation and reclamation districts. Provides that any existing contracts between the district and a local government regarding provision of water, wastewater, drainage, or solid waste disposal service within the district govern the local government's obligations regarding such services. A severability provision is included. Emergency clause; effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The name of the conservation and reclamation district to be created is changed from the North Hays County Water Authority, in the original bill, to the Southwest Travis County Authority, in the substitute. This reflects the fact that the district territory in the substitute is limited to within Travis County, compared to the original, which included land within Hays County. In Section 1.02 of the substitute, the definition of "authority" is replaced by a definition for "district", and a definition of "pollution" is added. Also, throughout the substitute, the term "authority" is replaced by the term "district". Section 2.02 of the substitute states that all of the directors of the district must reside in Travis County and at least five of the directors must reside in the district. Subsection (c), Section 2.05 of the substitute clarifies that a majority of the directors constitutes a quorum for the transaction of business and that a vote of a majority of directors present at a meeting at which a quorum is present is required for board action. Solid waste disposal is added to the list of powers and duties in Section 3.01(a)(3) of the substitute. Subsection (b), Section 3.01 of the substitute clarifies that the annexation of any district territory by a political subdivision or local government requires approval of all landowners in the area to be annexed. In addition, the substitute states that all area within the district is removed and excluded from the ETJ of any local government or other political subdivision in the state. Subsection (c) of the substitute expands the district's powers, subject only to the TNRCC's authority, to do the following within the district: regulate septic tanks; prohibit the pollution of and enforce rules regarding any stream, drain, or tributary that may constitute a source of water supply; adopt and enforce rules protecting a watershed; provide for the protection and management of an endangered species located within the district or affected by activities in the district; regulate the subdivision of land, all zoning and land use, resource extraction activities, and the use and development of public parkland; coordinate the provision of water, wastewater, solid waste disposal, or drainage services within, to, or from the district; and control or abate water pollution caused within the district. A new subsection (d) is added to Section 3.06 in the substitute, requiring a person who unsuccessfully challenges the validity of any portion of this Act to pay the reasonable attorney's fees, expert witness fees, and other costs incurred by all opposing parties in defending this Act. Language has been revised in Sections 3.07 and 3.08 of the substitute to reflect that the district's water pollution control and abatement program shall achieve state water quality standards adopted by TNRCC and in effect on January 1, 1995. The language in the original stated that the district's program should be "designed to protect human health" and "consistent with uniform state water quality standards adopted by the commission." The commission, in the substitute, is required to notify the district of the commission's specific objections to the district's program within 30 days of receipt of the program, after which time the program becomes operative. This 30-day time period replaces a 90-day time period contained in the original bill. A new subsection (b) is added to Section 3.08 in the substitute, stating that the Act does not authorize the district to develop, own, or operate a surface water dam or reservoir for potable water supply purposes or to limit or supersede an existing water management plan, water right, or water supply or wastewater treatment facility of a certain conservation and reclamation district described in the substitute. Section 3.09 in the substitute is amended by deleting subsections (a)-(d) relating to the authority's procedures for establishing minimum standards of operation for all solid waste activities and facilities in the authority, and replaces that language with new subsection (a), granting the district the powers and duties relating to the regulation of solid waste granted to a local government under the Health & Safety Code. Such powers include the ability to require permits for solid waste activities, so that language is removed from subsection (b) as it appears in the substitute. New Section 3.11, relating to subdivisions, is inserted in the substitute. This section provides the district the power and jurisdiction to approve a plat or replat of tracts of land in the district, subject to certain county powers and jurisdiction. Also, it states that a district regulation regarding the subdivision of land within the district supersedes a conflicting county regulation. Subsection (b) establishes procedures for the county and district to approve or disapprove plats or replats of land in the district. Subsection (c) prohibits the county and district from regulating certain land uses on land within the district. New Section 3.12, relating to municipal utility districts, is inserted in the substitute. Subsection (a) states that only the TNRCC shall regulate creation of MUDs within the district. Subsection (b) gives the district the power to enforce, amend, or terminate provisions of agreements between a MUD in the district and any local government or political subdivision in the state relating to land use or site plans, restrictive covenants, the provision of drainage and solid waste disposal, the regulation of septic tanks, the control and abatement of water pollution, the prohibition of pollution and policing of any source of water supply, or the protection and policing of watersheds in the district. Subsection (c) clarifies that the authority granted to the district in subsection (b) of this section supersedes the authority of any local government or political subdivision in the state regarding the matters in subsection (b). Subsection (d) provides that the district's rules in effect at the time of creation of a MUD in the district govern the MUD until the bonds issued by the MUD have been paid. Subsection (d) also places restrictions on the types of requirements and conditions that a political subdivision or local government may place on the MUD. A new subsection (b) is added to the section entitled Eminent Domain, in the substitute, prohibiting the district from exercising its eminent domain powers in a certain conservation and reclamation district described in the Act. Also, a new subsection (b) is added to the section entitled Use of Public Easements, in the substitute, making the section inapplicable to an easement of a certain conservation and reclamation district described in the Act. In Section 6.01 of the substitute, the size of the district is given as 4,661.248 acres, as compared to a 4,584.7234 acre tract described in the original bill. Also, the legal description for the tract in the substitute includes references to certain tracts not referenced in the legal description for the district territory in the original bill. Also, a reference to Hays County property in the legal description in the original bill does not appear in the legal description for the district territory in the substitute. Consistent with the differing configurations of the territories described in the original and substitute versions of the bill, the metes and bounds descriptions of the territories in the respective versions of the bill are different. In Section 6.04 of the substitute, it is clarified that the district may annex territory located in the Bear Creek, Slaughter Creek, or Williamson Creek watersheds and not located in the corporate limits of a municipality. Also, the substitute requires 100% landowner approval, via petition, of any territory proposed to be annexed. The original bill stated that a petition for annexation could be initiated by the owners of 50 percent or more of the value of the land proposed to be annexed. The substitute also eliminates the requirement for voter approval of the annexation by property owners in either the area to be annexed or the district. Finally, a new subsection in Section 6.04 of the substitute states that the district may not increase its area through annexation more than 10 percent per year by area, and that the district territory may not exceed 8,000 acres. However, if the district does not annex in a given year, it may carry over that 10 percent limit to succeeding years, provided, however, that the district may not annex in a calendar year a total area greater than 30 percent of the total area of the district territory as of January 1 of that year. Section 7.02 of the substitute addresses how the authority of a certain conservation and reclamation district described by the Act is reconciled with the powers and duties of the district. Section 7.03 of the substitute states that existing contracts relating to a local government's providing of water, wastewater, drainage, or solid waste disposal service to an area within the district shall govern the local government's obligations to provide service to the area within the district, until the contract expires. Section 7.04 provides a severability clause, that was not contained in the original version of the bill. Section 7.05 of the substitute adds a provision that the Act be effective upon passage. SUMMARY OF COMMITTEE ACTION H.B. 3193 was considered by the committee in a public hearing on April 18, 1995. The following persons testified in favor of the bill: James O'Reilly, representing himself and the Organization of Unified Circle C Homeowners; William Terry Bray, representing Gary Bradley; Kevin Cromack, representing himself; and Jeffrey Groux, representing himself. The following persons testified against the bill: Luther Polnau, representing the City of Austin; Roger Duncan, representing the City of Austin; and Pamela Thompson, representing herself and Citizens Organized to Defend Austin. The following persons testified neutrally on the bill: Representative Alec Rhodes; and Bill Couch, representing himself and the Barton Springs / Edwards Aquifer Conservation District. The bill was left pending. H.B. 3193 was considered by the committee in a formal meeting on April 24, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 8 ayes, 0 nays, 0 pnv, 1 absent.