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 amends Subtitle F, Title 6, Special District Local Laws Code by adding Chapter 8354 to create Harris County Municipal Utility District No. 524 (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 and Article III, Section 52, Texas Constitution 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 Harris County. According to the 2007 State Water Plan, Harris County is projected to from its 2000 population of 3,400,578 people to 3,951,682 in 2010 and to 4,502,786 in 2020.  The county other population of Harris County was 76,009 in 2000 and is projected to be 51,260 in 2020. 

2)     Location – The proposed district is located in northwest Harris County, near the intersection of Kickapoo Road and U.S. Highway 290, east of the City of Waller. The proposed district does not appear to overlap any known CCN boundaries.

3)  Comments on Powers/Duties Different from Similar Types of Districts - The District has the power of eminent domain but it is limited to within the District for road projects or recreational facilities. The District has the ability to levy a contract tax. The District may be divided into two or more districts. The District has the authority for road projects.
 
4)  Overlapping Services - The stated boundaries form an acceptable closure on some tracts, but do not form an acceptable closure 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 Harris County is needed to complete overlapping services check.  The district may overlap the following providers: Coastal Water Authority, Certificate of Convenience and Necessity (CCN) No. 10342 for H-M-W Special Utility District, Harris County Flood Control District, Harris County Municipal Utility District No. 497, North Harris County Regional Water Authority, Port of Houston Authority, West Harris County Regional Water Authority, and CCN No. 12258 (N. 0033) for Kickapoo Meadows Utility Service Company.

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 – Within Harris County, about 35 percent of the total water used in 2004 was groundwater. Of this, 87 percent was for municipal purposes. Groundwater within Harris County is pumped from the Gulf Coast Aquifer. Water management strategies in Harris County include drilling new groundwater wells, indirect reuse, municipal conservation, and securing new contracts from existing sources.