BILL ANALYSIS C.S.H.B. 3230 By: Thompson 5-3-95 Committee Report (Substituted) BACKGROUND The Tidwell Timbers Municipal Utility District, Greenwood Utility District and Parkway Municipal Utility District each are working toward obtaining surface water supplies. The Greenwood and Parkway districts would have to spend several thousand dollars to build a dedicated surface water supply line unless some method of cooperation between the three districts can allow them to utilize the existing interconnected lines. A simple contract will not provide that mechanism because the districts take different amounts of water and at different rates. Creation of a water authority would allow the authority to act as a contracting agent for all three districts. PURPOSE To create the TGP Water Authority. 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 Section 1. Creates the TGP Water Authority under the provisions of Article XVI, Section 59, Texas Constitution. Section 2. Defines "authority," "board," and "person." Section 3. Provides for the boundaries of the authority to include the land in the Tidwell Timbers, Greenwood and Parkway Municipal Utility Districts. Section 4. Statement of finding of benefit. Section 5. Provides for the general powers and duties of the authority by reference to certain subchapters of Chapter 54, Water Code. Also provides for the authority to obtain water supplies and property, contracting authority, and authority to obtain water rights. Does not require a confirmation election. Section 6. Allows the Authority to adopt a water conservation program. Section 7. Allows for exclusion of a political subdivision from the Authority. Section 8. Allows addition or annexation of land into the Authority. Provides for petition by the political subdivision to be added and the permission of the City of Houston before addition can occur. Section 9. Prohibits assessment or levy of taxes by the Authority. Section 10. Provides for the initial board of directors of 9 members by appointment by the member political subdivisions. Section 11. Provides for a permanent board of directors with staggered terms of three years. Also provides for election of officers, quorum, and filling vacancies. Requires positive vote by majority of the membership, including at least one positive vote from a representative of each member district, to take any action. Section 12. Allows the Authority to hire employees as necessary. Section 13. Provides for general financial authority, including reimbursement for organization expenses, loans, investments, and fees for services. Section 14. Allows the Authority to issue revenue bonds in accordance with Article 717k-6, V.T.C.S. (Bond Procedures Act of 1981). Section 15. Allows the Authority to build necessary facilities; provides for the power of eminent domain in accordance with Chapter 21, Property Code. Section 16. Provides for offices and meeting places for the Authority. Section 17. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The Substitute is a Legislative Council redraft of the original bill, for the purpose of "cleaning up" the bill. The Substitute adds a new Section 4, "Finding of Benefit," and renumbers the subsequent Sections. The Substitute additionally has "clean up" language in Subsections; 5, 11, 14, and 15, which do not alter the meaning of these sections. SUMMARY OF COMMITTEE ACTION H.B.3230 was considered by the committee in a formal meeting on May 3, 1995. No testimony was received. 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 and be sent to the Committee on Local and Consent Calendars, by a record vote of 8 ayes, 0 nays, 0 pnv, 1 absent.