HBA-BSM H.B. 1842 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1842
By: Callegari
Natural Resources
8/14/2001
Enrolled



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 is located within Area 3 of the
Harris-Galveston Coastal 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 affected 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.  House Bill 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

House Bill 1842 creates the West Harris County Regional Water Authority in
Harris County and sets forth provisions regarding the boundaries of the
authority (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 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
(SECTIONS 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

May 28, 2001.