BILL ANALYSIS

C.S.H.B. 701

By: Farney

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The Corn Hill Regional Water Authority of Bell and Williamson Counties currently encompasses land within its member entities, the Sonterra Municipal Utility District and the CLL Municipal Utility District No. 1, that is planned for residential and commercial development.  Interested parties note that a recent regional water planning study identified the need for construction and financing of extensive water development infrastructure in order to serve the needs of the member entities and other political subdivisions in the planning area.  The interested parties contend that under the authority's original enabling legislation the authority was empowered to provide regional water supplies but that in order to facilitate a plan for long-term development for its member entities the authority needs additional powers, including wastewater and drainage authority.  C.S.H.B. 701 seeks to address these issues by establishing relevant provisions relating to the authority.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 701 amends the Special District Local Laws Code to establish that the Corn Hill Regional Water Authority is created to accomplish, among other things, the reclamation and drainage of the district's overflowed lands and other lands needing drainage; the control, abatement, and change of any shortage or harmful excess of water; and the protection, preservation, and restoration of the purity and sanitary condition of water within Texas. The bill authorizes the authority's board of directors, at any time, by resolution to appoint a nonvoting ex officio director to serve at the pleasure of the board and by resolution to remove an ex officio director. The bill entitles an ex officio director to all notices and information given to and accessible to a director and authorizes an ex officio director to attend and participate in any board meeting. The bill, in a provision authorizing a municipality or other political subdivision to petition the board to add that municipality or political subdivision as a member entity, specifies that a county may petition the board as such.

C.S.H.B. 701 removes language prohibiting the authority from providing wastewater or drainage facilities or services and language establishing that the authority does not have any power that its member entities do not have. The bill authorizes the authority, for any authorized authority purpose, to issue bonds or other obligations payable wholly or partly from revenue of the authority's sanitary sewer system or drainage system, as well as the authority's water system, or from any combination of those sources of revenue. The bill authorizes a member entity, under a contract with the authority, to make payments from any of the member entity's sources of revenue, including property taxes, impact fees, grants, sales and use taxes, and any other source to provide money for the administrative and operating expenses of the authority.    

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 701 differs from the original only by amending the caption.