TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB853 by Nichols (Relating to the creation, administration, powers, duties, functions, operations, and financing of the San Jacinto Special Utility District. ), Committee Report 1st House, Substituted

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
The bill creates San Jacinto Special Utility District (District), with the powers and duties of a special utility district under Water Code Chapters 49 and 65. The purpose of the District includes: providing works and projects under powers conferred by Article XVI, Section 59 of the Texas Constitution to benefit the property within the District and the power of eminent domain within its boundaries. The District is subject to confirmation election by the voters.

1) Population - The description of the proposed boundaries does not allow staff to develop precise population estimates, although it appears that the proposed district is intended as a successor to the currently existing San Jacinto Water Supply Corporation. In the 2007 State Water Plan, the population of this district, based on the 2000 Census, was 2,922, projected to increase to 4,457 by 2020.
 
2) Location - The district is located within San Jacinto County.
 
3) Comments on Powers/Duties Different from Similar Types of Districts - If the District has not been confirmed before September 1, 2009, then the District is dissolved on September 1, 2009. If the District is confirmed, the San Jacinto Water Supply Corporation (SJWSC) shall transfer its assets, debts, and contractual rights and obligations to the District.  No later than the 30th day after the transfer, the SJWSC shall be dissolved.  Upon dissolution, the SJWSC shall notify the Commission of the dissolution and the TCEQ will transfer Certificate of Convenience and Necessity No. 10124 from the SJWSC to the District.   
 
4)  Overlapping Services -  Based on the metes and bounds provided in the Senate Committee Substitute version, the stated boundaries form an acceptable closure.  There is insufficient information provided in the bill to determine if the District overlaps any water supply or sewer‑service corporations, investor‑owned utilities, or local water districts or authorities.  An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within San Jacinto County are needed to perform an overlapping services check.  A metes and bounds description (preferably with the source Abstract listed) is also needed.  The metes and bounds provided for the proposed District may not include the entire water San Jacinto Water Supply Corporation. 
 
5)  TCEQ's Supervision - As with general law districts, the TCEQ will have general supervisory authority, including bond review authority and review of financial reports.
 

6)  Water Use - Estimated water use in the San Jacinto WSC in 2000 was 337 acre-feet. It appears that current water use is from both groundwater and surface water sources.