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

The bill amends Subtitle C, Title 4, Special District Local Laws Code by adding Chapter 3872 to create Chambers County Improvement District No. 2 (District) with the powers and duties of a municipal management district under Water Code Chapters 49 and 54. The purpose of the District includes providing works and projects under powers conferred by Article XVI, Section 59, Texas Constitution and Article III, Section 52 and 52-a, Texas Constitution, and Chapters 375, 380 and 505, Local Government Code, to benefit the property within the District. 

The District is subject to confirmation election.  The District is subject to consent of all municipalities in whose corporate limits or extraterritorial jurisdiction the district is located.  The bill does not name five temporary directors. The majority owners of the assessed land value inside the District may submit a petition requesting the TCEQ appoint the five temporary directors listed in the petition.

The bill becomes effective immediately with two-thirds vote of the members or on September 1, 2009.

1)     Population - The proposed district is located in rural Chambers County. According to the 2007 State Water Plan, Chambers County is projected to grow from 26,031 in 2000 to 31,375 in 2010 and to 37,328 in 2020. The county other population of Chambers County was 3,841 in 2000 and is projected to be 3,728 in 2020.

2)     Location - The proposed district is located in west Chambers County near the intersection of FM 565 and FM 1405, west of Beach City and east of Baytown. The proposed area overlaps the CCN boundaries of the Baytown Area Water Authority.

3) Comments on Powers/Duties Different from Similar Types of Districts - The District has the authority to construct recreational facilities and for road projects, to be a member of nonprofit corporations and charitable organizations, authority to contract for law enforcement and economic development programs, and for firefighting and emergency medical services. The District has the authority to impose an assessments and a contract tax and to establish defined areas or designated property.  The District may not be dissolved because of municipal annexation.

4) Overlapping Services - The stated boundaries form an acceptable. An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Chambers County is needed to complete overlapping services check.  The district may overlap the following providers: Certificate of Convenience and Necessity (CCN) Nos. 12983 & 20899 for Monarch Utilities LP, CCN No. 10872 for Baytown Area Water Authority, Gulf Coast Waste Disposal Authority, Trinity River Authority, Baytown Area Water Authority.

5) TCEQ Supervision - The TCEQ supervision is limited to review of the District’s bonds to finance water, wastewater, or drainage facilities and financial reports required by the Water Code; otherwise, the District is not subject to TCEQ supervision.

6) Water Use - Within Chambers County, almost 6 percent of the total water used in 2004 was groundwater. Of this, over 17 percent was for municipal purposes. Groundwater in Chambers County is pumped from the Gulf Coast Aquifer. Water management strategies for Chambers County include municipal conservation, new contracts from existing sources, new groundwater wells, and irrigation conservation.