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 F, Title 6, Special District Local Laws Code by adding Chapter 8361 to create Chambers County Improvement District No. 3 (District) with the powers and duties of a municipal utility 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 to benefit the property within the District. 
 
The District is subject to confirmation election to confirm the district and elect five permanent directors by the voters.  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 District has the power of eminent domain limited to inside the District’s for road projects or recreational facilities. The District may be divided into two or more districts. The District has the authority to provide firefighting and emergency services and to levy a contract tax.
 
The bill is 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 Central Chambers County near the intersection of FM 565 and FM 3180 and north of Beach City.

3) Comments on Powers/Duties Different from Similar Types of Districts - The District has the power of eminent domain within the district except for road projects or recreational facilities and compliance with municipal consent ordinance or resolution. The District may be divided into two or more districts. The District has the authority of firefighting and emergency services, feasibility evaluation, elections regarding taxes or bonds, contract tax, operation and maintenance tax, authority to issue bonds and other obligations, taxes on bonds, bonds for road projects.

4) Overlapping Services - The stated boundaries form an acceptable closure on some tracts but not on others.  An area map containing at least two reference points (major road names, road intersections) and the proposed district's geographic location mapped within [District's County] County is needed to complete overlapping services check.  The district may overlap the following providers: Bay Area Water Authority, Chambers Liberty Counties Navigation District, Coastal Water Authority, Trinity River Authority, Certificate of Convenience and Necessity (CCN) No. 11157 for Aqua Texas Inc., CCN No. 10872 for Baytown Area Water Authority, CCN Nos. 12994 & 20909 for Gray Utility Service LLC,  CCN No. 20465 for Gulf Cost Waste Disposal Authority, CCN No. 12143 for Kelley Well Service, CCN Nos. 12983 & 20899 for Olsen Estates Property Owners Association.

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.