TO:	Honorable Allan Ritter, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4802 by Otto (Relating to the creation of the Liberty County Municipal Utility District No. 6; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.), As Introduced

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 8367 to create Liberty County Municipal Utility District No. 6 (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 to benefit the property within the District.
 
The District is subject to confirmation election 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 names five temporary directors. The majority owners of the assessed land value inside the District may submit a petition requesting the TCEQ appoint successor temporary directors listed in the petition, if permanent directors have not been elected upon the expiration of the terms of the first temporary directors.
 
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 Liberty County. According to the 2007 State Water Plan, Liberty County is projected to grow from 70,154 in 2000 to 81,930 in 2010 and to 94,898 in 2020. The county-other population of Liberty County is projected to grow from 39,529 in 2000 to 48,621 in 2010 and to 58,633 in 2020.

2)     Location – The proposed district is located in east Liberty County along the county line shared with Harris County. The proposed area is northwest of Dayton and east of Houston. 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 limited to inside the District for road projects or recreational facilities. The District may be divided into two or more districts. The bill gives the District the ability to levy a contract tax.

4) Overlapping Services - The stated boundaries form an acceptable closure.  An area map containing at least two reference points (major road names, road intersections) and the proposed district's geographic location mapped within Liberty County is needed to complete overlapping services check.  The District may overlap the following providers: Liberty County Municipal Utility District Nos. 2 and 3, Plum Creek Fresh Water Supply District No. 1, San Jacinto River Authority, Port of Houston Authority, Coastal Water Authority and Harris County Flood Control District.
 
5) TCEQ's Supervision - As with general law districts, the TCEQ's will have general supervisory authority, including bond review authority and review of financial reports.

6)  Water Use – Within Liberty County, 17 percent of the total water used in 2004 was groundwater. Of this, 55 percent was for municipal purposes. The groundwater in Liberty County is pumped from the Gulf Coast Aquifer. Water management strategies for Liberty County include irrigation conservation, drilling new groundwater wells, and obtaining new contracts from existing sources.