The Legislative Budget Board in cooperation with the Water Development Board (TWDB) and Texas Commission on Environmental Quality (TCEQ), has determined the following:

Subject to a confirmation election, the bill creates Central Harris County Regional Water Authority (Authority) in Harris County with the powers and duties of Section 59, Article XVI, Texas Constitution and Water Code Chapter 49 related to general law districts. The purpose of the Authority including the acquisition and provision of surface water and groundwater for residential, commercial, industrial, agricultural, and other uses, the reduction of groundwater withdrawals, the conservation, preservation, protection, recharge, and prevention of waste of groundwater, and of groundwater reservoirs or their subdivisions, the control of subsidence caused by withdrawal of water from those groundwater reservoirs or their subdivisions.

1) Population- Staff was unable to calculate the population of each district within the proposed authority within the review timeframe.  However, a number of the districts are itemized within the 2006 Region H Water Plan.  The population projections are below.

The population for the unincorporated portion of Harris County not within a water utility named in the plan (described as "County-Other") is projected to decline from 76,009 in 2000 to 65,312 in 2010.

2) Location & Size- The Authority is located in Harris County and comprises of Fallbrook Utility District (UD), Harris County UD No. 16 , Rankin Road West Municipal Utility District (MUD), and Harris County MUD Nos. 33, 150, 200, 205, 215, 217, 304, 399.

3) Powers- The Authority will have the general powers and duties granted to Sections 52(b)(1) and (2), Article III, or Section 59, Article XVI, of Texas Constitution and general law districts under Texas Water Code Chapter 49.

4) District Finances- The Authority may issue revenue bonds. The Authority may levy fees and user fees as necessary.

5) Board of Directors- Same as general law districts. The Bill appoints five temporary directors named in the Bill. Vacancies will be filled by appointment from the governing bodies of the member districts.

6) Eminent Domain- Same as general law districts except property owned by or within the boundaries of the City of Houston. The Authority may condemn by either fee simple title or an easement only.

7) Ability to Tax- The Authority may not levy ad valorem tax.

8) Ability To Exclude Property- Same as general law MUDs, the Authority has the power to exclude property.

9) Overlapping Services- The bill names eleven local water districts (specified above) within the Authority.

10) Adequacy of Boundary Description- Since the Authority consist of eleven general law districts; therefore, a boundary description was not provided.

11) Comments on Powers /Duties Different from Similar Types of Districts- The Authority may acquire or develop surface water and groundwater supplies. The authority and may conserve, store, transport, treat, purify, distribute, sell, and deliver water to other political subdivisions. The authority allocates water among persons participating in the authority's groundwater reduction plan.

12) TCEQ’s Supervision- Unlike as with general law districts, the TCEQ will not have general supervision authority, including bond review authority and review of financial reports.

13) State Water Plan Objectives-Water Use: Within Harris County, 24 percent of the total water use was groundwater in the year 2000.  Sixty-nine percent of the groundwater use was for municipal purposes.  The proposed district will be located over the Gulf Coast Aquifer and would be locate in both the Harris-Galveston County Subsidence District.

Board staff finds that creation of the proposed authority is not in conflict with the State Water Plan objectives of promoting the efficient use of local groundwater resources and the implementation of practices and programs to effectively manage local groundwater resources.